An Australian Federal Court judge has ordered Qantas (QF, Sydney Kingsford Smith) and the country’s Transport Workers’ Union (TWU) into compensation negotiations over the illegal sacking of 1,683 ground workers in 2020.

Justice Michael Lee handed down his judgement in Sydney on October 21, 2024, in the matter of Transport Workers’ Union of Australia v Qantas Airways Limited (Compensation Claim) [2024] FCA 121.

Having already established that Qantas acted illegally when it sacked workers and outsourced their jobs, this judgement dealt with what it would cost the airline. According to Lee's calculations, the total economic and non-economic losses employees experienced may render Qantas liable for more than AUD150 million dollars (USD100.5 million) in damages.

Specifically, based on an average annual salary of AUD50,000 (USD33,500), Lee found claims for economic damages would amount to around AUD85 million (USD57 million). He determined non-economic losses using three test cases at a rate of AUD30,000 (USD20,000), AUD40,000 (USD26,750) and AUD100,000 (USD67,000). The impending compensation bill would have been higher but for Lee agreeing that the workers would have had their jobs outsourced within 12 months anyway.

After a changing of the guard last year, newly installed Qantas Group CEO Vanessa Hudson apologised for the sackings and promised to speed up compensation payments. The airline set aside AUD70 million (USD47 million) in its accounts to do so. After Lee's ruling, the airline apologised again.

"Qantas says it’s turned over a new leaf," TWU President Michael Kaine said after the judgement. "It’s time to prove it. After relentlessly prolonging this case and denying workers justice, Qantas must do everything in its power to ensure appropriate compensation to workers."

The union had been seeking a total damages payment of approximately AUD200 million (USD134.5 million).

"Without assigning blame to either party, hopefully some common sense can prevail after all the disputation that has taken place, including three separate hearings, six first instance judgments, three appeals (two by Qantas and one by the union), various notices of contention, and interlocutory disputes," Lee's ruling reads.

"Vast legal costs have been expended by both sides, and particularly by Qantas who have retained no less than five senior counsel during the course of the matter and numerous solicitors at one of Australia’s preeminent law firms. Both sides have engaged in rhetoric about being willing to resolve all issues with promptitude. It may be a triumph of hope over expectation, but my desire is for the Court to move quickly to resolve any penalty and the balance of compensation issues."

Lee ordered both sides into talks to try to negotiate the final settlement amount and make residual arguments when the matter is relisted on November 15.

"If failing mediation there is no resolution of this broader issue, then I propose to direct each party to provide thereafter a submission as to what they consider to be their best estimate of the total amount that would be payable," he said. "The resources of the court are finite and every case which is not settled must be heard and determined. Consequently, the court encourages parties to settle their litigation, and it is in the interests of the administration of justice that they do so."

"Qantas has sought the assistance of the TWU in order to find a way to speed up the compensation and a mediation process will now commence," a Qantas Group statement on the judgement reads "The group is also undertaking an actuarial review to develop an estimate of the likely total compensation amount payable."